Meta Platforms (NASDAQ: META) saw its shares climb 2.2% in premarket trading on Monday, buoyed by a renewed bullish stance from Goldman Sachs. The investment bank reiterated its Buy rating and $725 price target, pointing to the recent launch of Meta's Muse AI agent and a legal settlement as catalysts that could drive the stock higher.
The move comes even as broader U.S. equity futures dipped, following comments from AI executives calling for a slowdown in AI development. Despite the sector-wide caution, Goldman's analysts expressed increased conviction in Meta's outlook, citing a clearer path for share appreciation.
Goldman Highlights Muse AI Monetization Potential
Goldman Sachs emphasized Muse as Meta's full-scale personal AI agent, accessible via dedicated apps, the web, and WhatsApp. Powered by the Muse Spark 1.3 model, the agent can browse the web, fill out forms, make purchases, and coordinate long-term goals. Meta has launched Muse as a paid subscription, marking its first major foray into consumer AI monetization, with plans ranging from a free tier to $100 per month.
The bank sees potential for Meta to expand monetization beyond subscriptions through commerce and advertising over time, though it expects the company to prioritize user adoption during the early stages. Goldman also noted Meta's scale and distribution as a key advantage, given its billions of daily users across Facebook, Instagram, Messenger, and WhatsApp—a user-acquisition edge that startups may find difficult to match.
Goldman had previously described Meta as transitioning from a "wall of worry" stock to one capable of productizing and monetizing its computing investments. It also identified Meta's Sept. 23 Connect event and potential new model releases as additional catalysts.
Ark Invest Buys Meta While Cutting Alphabet
Meanwhile, Cathie Wood's Ark Invest increased its exposure to biotechnology and AI during the past week, with Meta among its largest purchases. Ark bought 43,000 Meta shares worth about $28 million, making it the firm's biggest purchase in the AI and technology segment. The firm also added to positions in Cerebras Systems, Kratos Defense & Security Solutions, Archer Aviation, Rocket Lab, Robinhood Markets, and the 3iQ Solana Staking ETF.
On the sell side, Alphabet led Ark's technology sales, with the firm offloading 86,000 shares worth $28.6 million. Ark also sold about 19,000 AMD shares worth $9.9 million, along with $6.5 million in Palantir Technologies and $4.25 million in Bullish stock.
Investors may also be watching related moves in the chip sector, as analysts reaffirm AI demand despite recent volatility. The broader market's reaction to AI-related news remains a key factor for tech stocks like Meta.
Meta's premarket gain reflects growing optimism about its AI strategy and legal clarity. With Goldman's endorsement and Ark's buying activity, the stock appears well-positioned for continued investor interest.
This article is for informational purposes only and does not constitute financial advice.
